Around 11 50, the gop released an fbi memo a lot of people are skeptical whether that would have any influence on the market. We moved down a few Percentage Points say its a small impact. In the midday yields started picking up around their highs, and weve been cascading lower ever since then. Lets put the vast majority of this clearly on yield concerns all 30 dow stocks have been moving to the downside, but weve seen some interesting moves of major stocks. For example, when was the last time you saw Goldman Sachs down 10 . Thats the biggest point decliner were seeing right now. But even some other big market leaders are down, notably. Boeing is behaving relatively well with the market down better than 2 . Boeing is only down 1. 7 still, its such a big stock, down six points. Thats 45 points in the dow. Then we have some earnings things coming out a little bit exxon was a bit of a disappointment on its earnings today. Thats down 6 even then, even with the lower priced stock, thats about 40 points in the dow. Chevron, depending how you look at it, a bit of a disappointment, lackluster commentary, thats down 6 points, another 40 points. We know about apple, thats also down about 6. Thats also influencing the market so, where do we bottom here . Ill have a guest in the next hour talking about technicals. Look at the 50day moving average and the s p 500. Its about 2176. Thats 50 points from where we are now. If youre not sure where the bottom is, look at the techni l technicals and thats the numbers floating around. Well talk about that in the 4 00. Bob, just quickly, what are volumes like today is this a broad selloff or a thin selloff no, volume right now is were heading towards 600 million. Well do north of its hard to call it a close north of a billion shares on the floor. In a typical day well do 700 to 750 million. Say this is is 25 to 35 above normal thats given the down dust side were seeing today, i would expect at least that much right now. Thank you, bob. For more on this dramatic selloff, lets bring in the man himself, someone whos seen it himself. Art cashin from Ubs Financial Services yesterday going into the close we had some weakness and you flagged the release of the house memo about the fbi as one possible concern citing everything from, you know, what does this mean for the fbi director staying to potential constitutional crisis. Do you think now it has been released this is a major contributor to the selloff today . It is in the sense not so much that it produced selling but that it inhibited buyers youre going into a weekend in washington youll have talk show, you may have resignations you dont know so, i think thats why youre seeing in moderate volume what seems to be a short sell simprof. The market is thin the bidders have stepped away. Basically look in the mirror and say, hey, why do i need this risk let me sit on my hands and stay another look on monday even if theyre up somewhat, they wont be completely out of reach. So, to avoid Political Risk, the buyers are stepping back theres no question the selling really is coming from concerns about the fed pulling the trigger too fast and the weakness in some of this stars of the f. A. N. G. Group, apple and alphabet all of that combined has got us here. The biggest point decline weve seen, brexit, obviously down more than 600 then. Weve seen the biggest, 770 going back to the financial crisis much larger in percentage terms. But its rare the higher we climb, perhaps we have to get used to seeing in percentage terms, this is still a big selloff. For the last ten days, we put it in perspective to the 3. 5 gain sorry, the 5. 5 gain that we saw for the month of january. This week alone is looking at 3. 5 to 4 pullback for the dow we cant even offset to the strong start of the year art, in terms of the Interest Rate factor, in terms of what that has sparked in this equity market selloff, do we now have to wait until Interest Rates peak, even though moneys coming out of bonds, it should suggest it could go into equities, do we have to wait until this rising trend of rates has fully peaked and plateaued off because people are waiting to see what happens . Its not specifically the yield level itself, at it looks like it when you make comparison it is the fear of the fed getting panicked suddenly responding. Thats why this payroll data this morning had a disproportionate effect with wages up, larger than weve seen them you have to remember what weve been through since the financial crisis they have pumped money into the system and it has gone nowhere we have really never had inflation. Theyve been pushing to get inflation up to 2 and now the fear is, gee, maybe these things are coming together maybe inflation will pop up. Now, the fed will they suddenly say, oops, we were pushing to get inflation up to 2 its maybe getting out of our control. We have to overreact thats a good deal of what the selling is this morning. Its not just because the yields moved higher its that whole combination of things. Were down 630 right now. Well keep it right here as we keep an eye on these markets and bring in our Closing Bell Exchange guest, Kevin Nicholson from river front Investment Group and ricksan stelly from the cme in chicago rick, lets just quick lil begin with you on this rate move as art mentioned, we started this morning with what seemed like good news on wages for the first time, 2. 9 yearonyear growth, maybe helped by some bonuses people got at end of the year is that good news, part of what the wad news is playing out in the market, do you think you know, i have a feeling that if there was no labor recorded at all today, dont think it would have turned out much different, personally with respect tothe report, it a good report but jobs are overinflated it doesnt mean it isnt good news it just means its not as potent when youre measuring a work week that has fewer hours. It creates distortions i think that has been brought up by many in the trading and in lots of articles i dont think thats the catalyst the only flat line we had briefly was slowdown around 24,000 in the world i come from, commodity is 38 retracements are considered normal. What are we now, 3 from the alltime highs im not dismissing this but i just think no market is going to go up every day. We spent six months in programming here talking about how it was impossible. I do think rates are a catalyst, obviously. But then again the fed is teasing inflation around the globe, especially the bank of japan and the united states, to some extent. Arts right, its going to happen sooner or later the problem is when it gets traction, its like Fred Flinstone feet, hits the ground running. The fed wants it theyre going to get exactly what they wanted and as far as why we keep going down, thank you, art cashin, because this memo is getting very little attention in certain circles. Maybe it doesnt warrant any nobodys going to step in here on a friday with all the uncertainty. Perhaps we should call it fed flynnstone that sums it up nicely. I like that excellent, wilf. Kevin, is is it too late, given the markets have already sold off, given volatility has picked up, is it too late to protect your portfolio or are there actions youre taking that can protect clients from this downside were seeing . No, its definitely not too late i mean, if you think about it, at the end of last year, the s p closed at around 26,073. So, youve had a pretty good runup at the beginning of this year coming into this year, we said that this was going to be the year that was a tug of war between growth and monetary stimulus well, obviously, were seeing that growth has picked up. Youre seeing this has been an excellent earnings season thus far and we had knew this would probably happen as the fed came in to play what we have done here is we have basically created stops as the market ran up, we put a stop in place and were going to stick to that stop you can always have multiple stops in place if you dont want to reposition your portfolio at all once you look at the tenyear, when it broke through to 2. 60, thats when a lot of equity markets started revaluing itself because investor who bought dividendpaying stocks in a low Interest Rate environment, they started to say, hey, now lets take a look. All of a sudden fixed income now has yields that are yielding as much as my equities. So, do i make a change thats where weve seen the selloff come from. No, its not too late. And, again, were down at session lows a moment ago we were down 642 points on the dow. Keith bliss, weve had markets upset when rates were too low. Maybe theyre upset when rates are too high or maybe as rick suggested, this didnt have anything to do with rates at all. Weve gone so far so quickly what do you think . I think so there was a trifecta of bad news as it relates to the dow specifically. The dow was vastly overbought for three weeks straight if you look at something we look at all the time, the relative strength index, it was at the highest level its been in 20 years. You had that then the tenyear yield smashing through 2. 60 getting back to levels weve not seen in about four years the next stop on that, if were going to have any kind of retraction in the selloff will be at 3 of course, two big dow components, chevron and exxonmobil and you can throw apple in there theyre conspireing to bring that index down. I do think this thing should come to an end the vix vastly overbought. Bonds vastly oversold. We should see some stemming of the bleeding, if you will. The otherpoint rick and arthur have made, its friday friday is not typically good times to go long or step into the pool to go long, especially when we have more distortions coming out of washington, d. C. , and political backfighting. Is it really is a buyers strike you anticipate someone would come in and take this bid that should be underneath the market. The dow is now oversold once again. This whip sawing back and forth. I fully expect things to fully stabilize once we clear out all the noise clear out all the we cans and the smart money will come in early next week and start buying this again. One thing thats up today is u. S. Dollar. Weve had six weeks in a row of the decline of the dollar. Clearly today, a big move in the opposite direction what do you make of that and is this a turning point for the u. S. Dollar . Its barely up on the week. It is by a little bit, but barely i think the dollar sickness can be remedied if we continue to see a very solid move in Interest Rates, possibly, but i think the dollar will remain more bearish than bullish. One thing i want to point out, all the guests have alluded to it, i dont want to diminish the impact of rates, once we had a couple closes in our pocket above last years high of 2. 63, thats when the market started paying attention the the next stop in that regard would be december 31, 2013 the single close above 3 since 2011 at 3. 03 if we go through 3. 03, the way we went through 2. 63, then i think we really may have an issue with equities but i think were aways from that. Keith and others mentioned, if theres a bit of a buyers strike until theres clarity in washington, is it the weekend until we find out or is this going to hang over the markets until theres some kind of resolution im hoping you get some hint of whats going on youll have all the talk shows on sunday. You know the memo is going to be a hot topic. If they dont expose what the vulnerabilities are or arent, my guess is that the buyers who are postponing today will show up on monday you come in and start nibbling, unless theres a big surprise over the weekend rick, i agree with you 100 on that level i happen to have it at 3. 04, but ill split the difference at 3. 03. Whats a basis point among friends. Exactly, exactly. Keith, just want to come back to you in terms of saying, if there are opportunities to pick up stocks at the moment, financials are down a full 2 in terms of the Sector Performance within the s p. Goldman sachs is down over 4 . They should be a beneficiary of rising rates is this a time to pick up names within a sector people like . Certainly financials come to mind first if you think about a rising rate environment. As weve been saying now, if the tenyear starts to smash through 3 and the long end of the curve continues to go up while the short end of the curve stays down a little bit, that is extraordinarily beneficial to financials that would be the place to put your money wilf, the fact of the matter is today everything has been thrown out, en masse. Thats not a single green Ticker Symbol in the dow. Very few in the s p 500. Im sure Portfolio Managers will be combing over their pick list, their hit list over the weekend and picking up some bargains youre right financials would be the place i would look, in the banks, the midlevel banks, the regional banks. Those would probably be good areas to go into because of the rate picture also if you believe the growth story, which seems to be taking shape here in the u. S. And globally, that would be a good place to go. Blue aprons up today, so continuing its contrarian streak just to put a pin in it, art, before we let you go and get back to work down here, on the questions about the president , do you think the markets selling off because theyre concerned about his future or is that drawing too straight a line between the events of today and why were selling off . No, again, i want to underscore, i dont think that memo and the political things are causing much selling theyre inhibiting the buyers. So, theyre creating this vacuum into which the selling is occurring. I think that the primary cause of the selling or the fear that the fed may pull the try g trigger, the fear rates may get ahead of themselves. As i said, the sudden vulnerability of the f. A. N. G. Stocks, alphabet and apple are there. Now i have to get down out of here and find out what the market on closes look like because that will be critical on a day like that. Arthur, one quick question, if i may earlier in the week when we had selling you were discussing it could be driven by the need for Portfolio Managers to rebalance at the end of the month. Now that were on the 2nd of february, thats not a factor anymore . No. It was a bit of a residual factor yesterday morning i think they should all be cleaned up now. Thanks very much. Guys, also, i mean, one of the things weve seen, though, is that you had Investor Sentiment get to extremes over the last couple of weeks i mean, you expect this to be a pullback, to see a pullback like this i think long term i think this is just a shortterm thing and the bull market will continue to run. Its down 560 points. Well keep you there, if you will. Yeah, stick with us arthur, we know have you to get back to the floor. Thank you for joining us lets bring in Bertha Coombs who has a look at whats driving the nasdaq lower at this moment. The nasdaq today we had this yin and yang in terms of the point impact on this market. Youve got amazon today at an alltime high. The intraday, well off the high it got this morning. Got to nearly 1500 a share. Thats 25 points of upside to the nasdaq 100 on the other side, wiping all of that out is apple, which is providing about 25 points to the downside apple we are watching in terms of where it closed its right at the correction level, down about 10 from its january 18th high. That is dragging down the nasdaq this week, pulling it down, having its worst week since last november thats a huge factor there apple, of course, disappointment on some of the numbers from its earnings despite the fact that it did beat and did have somewhat strong apple iphone x sales. Apple is not the only stock in the nasdaq 100 and corrections we have a dozen stocks off more than 10 from their highs, including tesla, which had been one of the big momentum stocks of late. Thats down 12 from the recent high a lot of chip stocks, kla which had big momentum, down 12 skyworks down 15 . And lam research which last hit an alltime high back in november, off more than 18 , so its almost getting to bear territory. The interesting thing is when you look at the sectors themselves, theyre only off about 5 , less than 10 from their recent alltime highs. So, were seeing some of the big momentum names here getting sold off perhaps as a little source of funds or just taking some of those profits off the table. We havent seen a big pullback like this on the nasdaq. A better than 1 , nearly 2 pullback in an awful long time a lot of traders, as they have been saying, saying we are, perhaps, overdue for this kind of profittaking, a bit of a pullback the nasdaq composite itself, not in correction here with the decline. Its only the first week in five that it is lower back to you. Bertha, thank you well check back in with you the dow dow 550 points the vix, volatility gauge, above 17 we havent seen that in over a years time. Rick, what do you think actually, keith, let me ask you since we were talking about those tech earnings. As art mentioned, the f. A. N. G. Doesnt look so invulnerable what is the significance of the fact that names like apple are struggling the way they are today . Well, i think its significant from the overall standpoint and health of the marketplace. When we look back on 2017, remember, we were having conversation over the summer and into the fall that it was the f. A. N. G. Stocks that were really driving the nasdaq so, if people are going to start pulling out of those names regardless of what the reason is, certainly its going to cast on the overall market. It is an area that we do need to watch and were going to have fits and starts, i think, with a few of the names as bertha was just saying, apples down while amazon is up one of the problems you have today here, kelly, when we talk about the market broadly is that because of the lack of volatility, you have a couple problems the algorithms were geared so tightly. Were seeing that at the close of business today. The other thing from a sentiment standpoint, and kevin can probably talk to this a little bit, is that weve not seen days like this very often in the last year probably not throughout 2017 when you come into a friday and see accelerated selling or any kind of panic selling, youre going to see these moves its just going to feed on itself theres lots of things that are conspireing to have us down for the day. Technically speaking we dont see much damage, if at all, to the major indices. Im highly confident that next week well see some bounceback here because were getting oversold readings across the market. Kevin, can i quickly ask you about the oil names because one asset class that is holding on largely to its january gains is oil prices theyre only off half a percent today. Brent, in fact s higher. Given ex